Recruiting a heavy hitter

After Zack and Marc had left, Lyman entered the financial office and inquired of the representative from the accounting firm stationed there, "How are the company's accounts this month?"

The man was a middle-aged, thin, bespectacled white individual who offered Lyman a slight smile. He retrieved the ledgers and handed them to Lyman, all the while giving his report, "This month, the company's primary source of income is the North American box office share of "Effervescent" from Paramount. Over the past two weeks, we've gradually received $73.26M in revenue from them. Additionally, there's the peripheral income from the company's earlier works, including "Saw", which amounts to a total of $6.23M. Furthermore, EuropaCorp has already delivered the overseas share for the first installment of "Effervescent", which is approximately $13.25M. There's still more than $70M to come in over the next few months."

Hmmm, although "Effervescent" had not yet concluded its overseas run, the cumulative earnings from various regions had already reached $230M. Given the current trend, it was unlikely to break the $300M mark, with the final figure likely falling between $250M and $280M.

"As for expenses, apart from routine management and personnel salaries, as well as the recent bonus payouts, the total expenditure comes to $7.42M, plus $17.22M in taxes, bringing the total to $24.64M."

Lyman couldn't help but notice that more than $17M of these taxes were a result of aggressive tax avoidance. This made him understand why most of America's wealthy individuals preferred supporting charities and establishing personal foundations. Without some clever maneuvers, the government could easily siphon off their wealth. There were simply too many tax categories, and the tax burden on the "middle class" was too high.

After some contemplation, Lyman said, "Prepare $30M for the bank account set up by Zack as an initial deposit. The remaining $30M for the production budget will be paid gradually based on the progress of filming. Also, how much do I personally have right now?"

The financial representative produced another set of records and stated, "These funds haven't gone through the company's accounts; they've been directly transferred to your bank account by Paramount. Including your director's salary and a portion of the box office incentives, you have a total of $9M. Additionally, you can also receive a director's share from overseas and offline revenues. Furthermore, EuropaCorp has offered an incentive bonus of approximately $200,000."

When tallied, Lyman's personal assets amounted to just over $22M, not to mention his shares in the company and various studios, a Beverly Hills mansion, and a Mercedes-Benz business car.

Having money naturally brought joy, and after signing the documents, Lyman instructed the firm to continue managing his personal assets. He then added, "Remember to allocate a portion of the income as a bonus to René."

"Of course, boss, I'm aware. However, with the company's current surplus, as well as future box office earnings and market profits, it's highly likely that the company's liquid assets will reach $500M. Boss, wouldn't you consider investing some of this? Our firm has many favorable projects we can help you with."

This accounting firm was among the best in the industry, and they eagerly hoped to manage assets like Lyman's. However, Lyman didn't think of this money as a lot.

"The company has other plans," Lyman gently declined.

The representative smiled but didn't press further. After all, achieving results was what mattered most to him.

Once Lyman was satisfied with the accounts, he left without further explanation. In his mind, he was constantly pondering the matter of distribution channels. Watching his own projects, which he had painstakingly worked on, generate substantial profits, only to see a significant portion of them devoured by distribution partners, left him dissatisfied. He hadn't complained yet, but it was becoming increasingly clear that this situation was far from ideal.

Moreover, as his business continued to grow, the importance of distribution channels for a film production company was undeniable.

No one wanted to be held by the neck indefinitely, even if Paramount, as a partner, was relatively decent. But in the world of business, relationships could only take you so far.

Moreover, if the project didn't turn a profit, Paramount probably wouldn't have a favorable attitude either.

As for establishing a nationwide distribution company, Lyman had roughly estimated the situation. To create one from scratch, it would take two to three years to pave the way, with costs ranging from $100M to $150M. A reference point was DreamWorks, which had built its North American distribution network this way.

Another option was to acquire a well-established company, which would typically cost over $200M, with an upper limit that was significantly higher. A reference here was Lionsgate, which, with the support of major international investment banks, had stormed into Hollywood, acquiring a distribution and production company that was doing reasonably well and had a strong foothold.

Lyman's approach naturally leaned towards the latter option, which meant preparing a substantial amount of working capital, sometimes even paying a premium to sway the shareholders.

For investors with a well-operating distribution company, it was undoubtedly a lucrative opportunity. Simply acting as an intermediary for smaller production companies, like Lionsgate had done in its early days, made it easy to turn a profit.

Companies with clear profit potential were unlikely to be sold at a low price.

After leaving the financial office, Lyman saw that there wasn't much for him to do at the company and decided to check on the progress of the film Guillermo was working on.

But before he could leave, the receptionist at the front desk called to inform him that John had arrived.

Lyman initially thought he had instructed John to finalize the search for suitable distribution companies in the industry. However, it turned out to be different.

In his view, finding a well-rounded distribution company with willing shareholders was not an easy task, and he had been collecting information, but no potential candidates had emerged.

"What brings you here?" Lyman asked.

"Over at the headhunting agency, they've found a potential candidate for you. You were looking for suitable management teams for a few companies, right? They've found one."

"Who?" Lyman inquired.

John replied, "Joseph Benjamin, a former executive from MGM."

"Is he willing to join us?" Lyman asked.

"He left MGM about six months ago and hasn't found another job since. The headhunting agency people have contacted him, and he seems open to the idea of getting back into a new role."

"Why did he leave MGM?" Lyman was curious.

"According to the information the headhunting agency gathered, he was a casualty of internal power struggles at MGM. The conflict between upper management and the board led to him being initially transferred from the headquarters to the UK subsidiary as an executive president. While it seemed like a promotion, he spent three years there without returning to the core management team at the headquarters. Eventually, he decided to resign."

"Is he interested in joining Firefly Films?"

"I'm not sure, but we've set up a meeting, and the next step depends on whether our terms can impress him."